Thursday 2 April 2009
Chairman's update for shareholders - 2 April 2009
I am pleased to report that the modest recovery in the Starvest net
asset value enjoyed during the quarter to 31 December 2008 has been
maintained and enhanced during the quarter to 31 March 2009 when the
closing portfolio net asset value was £4.25m, a 7.9% increase in the
half year since 30 September 2008.
The prudent valuation basis adopted when preparing the Starvest
annual financial statements at 30 September 2008 has proved to be
fully justified; Starvest now uses closing bid prices or the
Directors' lower valuation, if deemed appropriate.
31 March 31 December 30 September 30 June
2009 2008 2008 2008
at BID at BID at BID at MID
values values values market
Trading portfolio value £4.25m £3.92m £3.9m £10.5m
Company asset value net £3.62m £3.23m £3.4m £11.9m
Net asset value - fully 10.01 8.98 pence 9.06 pence 27.46
diluted per share pence pence
Share price - mid 6.25 pence 6 pence 12.25p 17.75p
Share price discount to 37% 33% 35% premium 35%
fully diluted net asset
Market capitalisation £2.18m £2.09m £4.28m £6.2m
During the quarter, Starvest added to its investment in Regency Mines
plc, a commitment entered into during October 2008.
Market conditions remain fragile, so I can do no better than repeat
the comments I made when issuing the last update as at 31 December
"The speculation of which I wrote in July that the crises impacting
the financial markets would lead to world-wide recession with a
consequential reduction in demand for natural resources and services
has proven to be well founded and as a result many of the companies
in which Starvest is invested have seen their share prices fall
during the past year.
"It remains the view of the Starvest board that demand for raw
materials will return as current stocks are exhausted and that
commodity prices must return to levels at which it again becomes
economic to mine newly discovered deposits."
"Whilst disappointed that our fears have been realised, the Board
continues to believe that it has within its portfolio investments
with considerable potential and is looking forward to an upturn
during 2010, possibly earlier for some."
Shareholders who wish to receive electronic copies of announcements
are invited to register their email address on the home page of the
Company website: www.starvest.co.uk.
R Bruce Rowan
Chairman & Chief Executive
2 April 2009
Bruce Rowan, Chairman 020 7486 3997 or John Watkins, Finance Director
01483 771992; firstname.lastname@example.org
Gerry Beaney or Colin Aaronson Grant Thornton Corporate Finance 020
7383 5100 is
solely responsible for the content of this announcement.